n NISM Certifications
X NISM Series X
Medium

Risk profiling helps investors assess their risk tolerance by analyzing attitudes, preferences, and experiences, which guides investment decisions.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Risk Journal

  2. Risk Profiling

    Correct answer

  3. C

    Systematic Investment Plan

  4. D

    Systematic Withdrawal Plan

Why this is the answer

Risk profiling evaluates an investor's risk appetite, enabling advisers to recommend suitable investment strategies.

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